111. Pre Market Analysis - May 24 , 2021
Bull Giants bounced back strongly in to the markets on Friday with the help of big bull sector i.e., Financial sector.
Where Nifty climbed 269.30 points , Sensex jumped 975.62 points and Bank Nifty out performed by closing with a gain of 1272.35 points.
Bank Nifty itself contributed 188 points in Nifty .
Majority of the Banking stocks gave perfect trendline breakouts due to the positive results announced by SBI in the market hours.
After declaring the results Bank Nifty shot up more than 700 points.
FIIs and DIIs were both on buying side on Friday ,as FIIs bought 510.16 crores and DIIs bought 649.10 crores.
SBIN , Hindalco and JSW Steel declared good results and mainly JSW Steel results was more than 5 times of previous quarterly results .
Coming to global markets :- Friday Dow Jones closed in positive but Nasdaq and S&P 500 closed in negative and UK are mixed.
Currently Dow Jones , Nasdaq and UK Futures are trading at higher.
Most of the Asian markets are trading at lower.
SGX Nifty is down by 87 points as of now.
Coming to India :- Today our markets may continue the bulls moment but opening may be cautious due to SGX Nifty and global markets clues.
See the way our markets closed on Friday, looks still bulls are in momentum so any drag from global markets might be a minor fall only and don't expect big falls in the bulls market.
Our Indian markets will always follow Dow Jones index so keep a eye on that , until Dow Jones futures turns to negative, our markets today will move in bullish even we open with gap-down so try to take confirmation from Weightage stocks and Dow Jones before going to take the trade rather than blindly going to short the market by following Asian markets and SGX nifty.
Most importantly today SBI will lead the market so focus on SBI today and watch all banking stocks with 1day time frame , majority of the stocks gave breakout except Kotak bank , as it has a resistance at 1800 so it may drag the bank nifty so dont chase the huge gap ups , its better to wait for right momemnt
We entered into the last expiry series of this may month and we may see lot of adjustments in the markets so expect the high volatility in this week.
The one who is looking for support and resistances based on OI data and chart analysis :- Nifty had a nearest resistance at 15,266 and next resistance will be ATH and support at 15,100.
Bank Nifty had a strong resistance at 35k , once it breaks then expect further rally and support at 33,925 .
All The Best , Trade With Discipline.
BONFIRETRADER